Diane talks about bankruptcy, Arizona laws, and more…

Ever wonder why you make really stupid decisions, especially when you are overwhelmed, worried or distracted? Perhaps you are focused on one task, like dealing with a difficult child or employer, and you completely miss a really important appointment or buy something you did not want. […]

Reprint from Consumer Affairs Desperate consumers enter into these agreements without fully understanding how they work. Generally, debt relief or debt settlement companies offer a service to debt-burdened consumers to intervene with creditors–in most cases credit card companies–and secure a lower payoff amount. Often, desperate consumers enter into these agreements without fully understanding how they [...]

UPDATE: July 9, 2019 Freedom Debt Relief agrees to pay $20 million in restitution and $5 million in civil penalty to settle the claims for deception, abusive actions, misrepresentation, failure to disclose. […]

Do you receive random e-mail messages stating that an invoice is due with the invoice as a Word or Adobe document attachment? I’ve gotten at least three over this year. I know these are scams, but I would like to know that I’m not the only one being targeted. […]

By Russ Wiles, Arizona Republic, 2/25/19 (reprint) For many Americans, income tax refunds are the largest single chunk of money they receive all year. Imagine losing most or all of it to a debt collector or in a bankruptcy proceeding. […]

WARNING TO THE WISE: Never do a short sale, deed in lieu of foreclosure, allow a trustee’s sale, or a foreclosure to go forward without first obtaining both legal and tax advice. You cannot undo serious mistakes once the process is completed. […]

The Consumer Financial Protection Bureau (CFPB) released a report focusing on mortgages made to first-time homebuyers who are serving in the armed forces or are veterans. The Bureau’s report is the first time researchers have been able to provide a description and analysis of servicemembers’ mortgage choices and mortgage performance, both during and after the [...]

  The insurance company’s first offer is based on the hope you will take the quick money and run. Lawyers who don’t care about their clients’ best interests can make a lot more money settling cheap and moving on to the next case, and the next, and so forth.   […]

(WARNING: The following is Arizona specific) Most people do not understand that if a creditor sues and obtains a judgment they can take the money in your bank accounts, including tax refunds.  The only protection money that is exempt.   I know this does not sound fair – especially when the creditor is taking your child [...]

In re Hindra v. Dockery, US Trustee & Deutsche Bank, BAP No. CC-18-1132-KuTaF (9th Circuit, Jan 29, 2019) In 2016  the debtor, using an attorney, filed a chapter 13 bankruptcy and everything went downhill from there.  There was a general failure to file the proper documents, meet deadlines or pay the amounts necessary in order [...]

Navient, FedLoan and other student loan servicers “outrageous mismanagement” February 12, 2019 – An audit report released by the Education Department Office of Inspector General described the outrageous mismanagement of federal student loan servicers, like Navient and FedLoan, […]

What is forgiveness of debt income? When you owe money and do not pay the full amount of the debt the lender is required to file a 1099 form with the IRS showing that you had phantom income in the amount the creditor forgave.  This is referred to as ‘forgiveness of debt’. […]

The answer is probably ‘no’, but depends on certain facts.  It depends on the law of the state where the judgment debtor lives.  It also depends on the type of assets the judgment debtor has – exempt versus non-exempt. […]

The following is a warning from the Federal Trade Commission: Good afternoon, Today, the Bureau’s Office for Older Americans is forwarding an email about scams targeting your Social Security number. The email was sent by Jennifer Leach, Acting Associate Director, Division of Consumer and Business Education, Federal Trade Commission. […]

Lost? Never guess at which way to go because there could be hungry lions waiting around the corner. Even experienced attorneys make mistakes when it comes to the interplay of bankruptcy and divorce Whenever a divorce and bankruptcy come into play it is very complicated to determine which should be filed or completed [...]

Data thieves don’t take a break during the holidays. In fact, the IRS warns taxpayers that the agency is seeing a large increase in bogus email schemes that seek to steal money or tax data. […]

ANOTHER DOCUMENT PREPARATION SERVICE IN TROUBLE FOR NOT FOLLOWING THE LAW – SAUNDRA EHRHARDT and AIRHARDT ENFORCEMENT SERVICE In re Munoz, 2:19-bk-05828 (7/3/2019)Judge Collins, Arizona bankruptcy judge, found Ms. Ehrhardt violated bankruptcy law and forced her to return the money paid by her “clients, plus fines for these illegal actions.  She is also barred from [...]

The Automatic Stay v. the Bankruptcy Discharge The Fair Credit Reporting Act “FCRA” and the Bankruptcy Code deal with debt differently and this difference can become confusing for everyone, including experienced bankruptcy attorneys.  For instance, the legal status of a debt changes as a bankruptcy moves to conclusion.  […]